Heather invests 4,900 in an account with a 3.5% interest rate, making no other deposits or withdrawals. What will Heather’s account balance be after 5 years if the interest is compounded 2 times each year?

Solution

Heather invests 4, 900 in an account with a 3.5% interest rate, making no other deposits or withdrawals. What will Heather’s account balance be after 5 years if the interest is compounded 2 times each year?

Solution

Amount : 5819.66

Solution steps

Translate the problem into an equation:

A = 4900 (1 + \frac{0.035}{1})^{1 \cdot 5}

4900 (1 + \frac{0.035}{1})^{1 \cdot 5} = 5819.66289 \dots

Round to the nearest hundredth:

5819.66

Amount : 5819.66

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